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The Efficiency of Mandatory Pension Funds: Case of Croatia

Author

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  • Draženović Bojana Olgić

    (PhD Associate Professor, Faculty of Economics and Business, University of Rijeka)

  • Hodžić Sabina

    (PhD, Assistant Professor, Faculty of Tourism and Hospitality Management, University of Rijeka)

  • Maradin Dario

    (PhD, Assistant Professor, Faculty of Economics and Business, University of Rijeka)

Abstract

The aim of this paper is to examine performance of pension funds in Croatia, or more precisely, to measure the technical efficiency of mandatory pension funds. The main role of the pension funds is to collect and invest the money contributed by the employer or the employee during working years until retirement. Therefore, development of pension funds as institutional investors is especially important for capital markets as well as for the whole economy. By applying the methodology of data envelopment analysis on a sample of 12 DMUs, i.e. four mandatory pension funds divided into three categories (A, B or C) for 2015-2018 period, we provide further evidence on their efficiency level. The results have shown very small differences among relative inefficient pension funds.

Suggested Citation

  • Draženović Bojana Olgić & Hodžić Sabina & Maradin Dario, 2019. "The Efficiency of Mandatory Pension Funds: Case of Croatia," South East European Journal of Economics and Business, Sciendo, vol. 14(2), pages 82-94, December.
    • Handle: RePEc:vrs:seejeb:v:14:y:2019:i:2:p:82-94:n:7
    DOI: 10.2478/jeb-2019-0015
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    More about this item

    Keywords

    mandatory pension funds; technical efficiency; data envelopment analysis; pension system;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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